European Parliament approves simplified trade regime with Ukraine
23 April 2024 16:47
The European Parliament has approved the extension of the simplified trade regime with Ukraine. This was reported by the press service of the body, Komersant ukrainskyi 
reports.
MEPs have extended the suspension of import duties and quotas on Ukrainian agricultural products for another year, until 5 June 2025. However, the provisions on duty-free trade have been amended to include further “safeguards” to protect European producers.
In particular, according to the decision, the European Commission may take any measures it deems necessary if imports from Ukraine cause “significant disturbances” on the EU market or the markets of one or more EU Member States. In such a case, the European Commission may launch an emergency brake for particularly sensitive agricultural products. This list includes the following products:
- poultry
- eggs
- sugar
- oats
- cereals
- corn;
- honey.
If imports of these goods exceed the average imports recorded in the second half of 2021 and for the whole of 2022 and 2023, tariffs may be reinstated. Thus, the EU is effectively reintroducing import quotas for these Ukrainian products, albeit at a high level.
As part of the agreement on these new rules, the European Commission promised to start negotiations with Ukraine on permanent trade liberalisation in the near future and to continue to closely engage the European Parliament in this process.
“The extension of trade support measures confirms the EU’s solidarity with Ukraine in the face of Russian aggression. This vote will simultaneously strengthen Ukraine’s economic resilience and protect the interests of European farmers. We will keep our promises – we will support Ukraine until its military victory and accession to the EU and NATO,”
– said Sandra Kalniete, MEP from Latvia.
Now the EU Council must formally approve the decision adopted by the parliament. The current simplified regime expires on 5 June 2024.
The preferential trade regime and its enemies
The decision to allow the free import of Ukrainian goods into the EU was made by the EU at the beginning of the full-scale Russian invasion as a gesture of support for the Ukrainian economy and in response to the Russian naval blockade of Ukrainian ports. During the two years of its operation, the simplified regime has gained a lot of opponents in the EU. In particular, the governments of Bulgaria, Poland, Hungary, Romania and Slovakia are demanding restrictions on imports of Ukrainian products. They claim that cheap agricultural products from Ukraine are flooding their markets.
Six major European farmers’ associations have also strongly protested against Ukrainian products. Polish farmers have even staged a border blockade, not only with Ukraine but also with Germany.
Despite this, the European Commission prepared and the European Parliament adopted a decision on 13 March to extend the preferential regime for another year, until 5 June 2025. However, it seems that the EU Council did not like that version of the decision, so the Parliament had to adopt a new one.
